Equity Risk Premium

Equity Risk Premium

What is Equity Risk Premium?Investing in equity is not risk-free. The risk is not only associated with returns, but the capital is also not… Read Article
Risk Return Trade off

Risk-Return Tradeoff

Risk-Return Tradeoff is the relationship between the risk of investing in a financial market instrument vis-à-vis the expected or potential return from the same.Risk-Return… Read Article
Unlevered beta

Unlevered Beta

Unlevered Beta DefinitionIt is a risk measurement metric that compares the risk of a company without any debt to the risk of the market.… Read Article
Beta

Beta

Beta DefinitionBeta is a measure of volatility or risk of an investment in relation to the market. Also known as the beta coefficient (β),… Read Article
Systematic vs Unsystematic Risk

Systematic Vs Unsystematic Risks

Definition of Systematic RiskSystematic risk is also referred to as non-diversifiable risk or market risk. Systematic risk is the fluctuations in the returns on… Read Article
Market Risk Premium

Market Risk Premium

Meaning of Market Risk PremiumThe additional return an investor receives for holding a risky market portfolio instead of risk-free assets is termed as a… Read Article
Arbitrage Pricing Theory

Arbitrage Pricing Theory

Arbitrage Pricing Theory (APT) is an alternate version of the Capital Asset Pricing Model (CAPM). This theory, like CAPM, provides investors with an estimated… Read Article